Monday, January 02, 2012

making a hat

It was inevitable. Here we are -- the second day of the new year -- and I am fretting about the old.

Having failed to take Kim’s sage advice to dump my house in 2008, I am now stuck with the equivalent of a white elephant.

It is a great house. The artistic result of craftsman hands in the 1920s. And plenty of character that comes with age.

But it is no longer my home. It is merely a piece of property. And like an aging dowager, it needs a bit of care to keep it drifting through the equivalent of Petrograd salons.

The big decision is windows. When I came north in 2010 to work as a trainer for six months, I intended to save enough money to purchase new windows. The current house windows are a potpourri of 1920s double hungs and 1950s metal cranks.

They need to be replaced. But replacing them will start an avalanche of repairs. New wall paint and paper. Refurbished hardwood floors. Updated carpet.

Ideally, I would do that only when I am ready to sell the house. Because any additional living in the house will inevitably lead to wear and tear.

But these are not the days to put a house on the market in Salem. And, looking at the housing market recovery figures, that day may be well south of my entry into the Medicare system. Or crypt. Whichever comes first.

The only reason to start the work now is to borrow the $40K or so I will need at a record low interest rate. Oh, yeah, I forgot to tell you that my work session last year did not result in a pirate’s treasure of doubloons. Somehow, it went to cruises and a lot of visits to El Gaucho.

Like most things in life, this one is a false choice. Either repairing the windows or letting them be will most likely lead to the same result.

That is one lesson I learned long ago. Simply picking a path is the choice we are given. There are no guaranteed outcomes.

29 comments:

Well, in this case mother really does know best. But I have to wonder what the payback would be on any repairs/upgrades. Windows are probably safe enough from a taste standpoint. After all, no one walks into a house and questions the taste in window style. But when I thought about replacing all the windows in my own small house, I counted 25 and thought to myself, "I think I'll live with the old ones." I found something called Dap "Seal 'n Peel," which is a kind of temporary caulk, and after sealing up all the windows ended up with ~65-75% of the benefit of new windows for about $3 per window. But I digress.

You also have to consider the hassle factor of either returning to Oregon to manage repairs or the even greater hassle of managing from afar.

If you've really committed to Mx, I'd just try to sell the house as-is.

But of course that is up to you. I wish you well with whatever path you take.

Saludos,

Kim GDF, MexicoWhere we are wondering how such a southerly city could be so chilly.

I think you are wise to make the repairs. Selling in it's current condition would bring you less value than doing the repairs. With all the bank properties on the market keeping prices low, I agree that waiting to sell is a good choice.

It took me over 4 years to sell my condo in Floirda and I lost 100K on the deal, but just couldn't afford the taxes, maintenance, insurance, and condo fees any longer. I have no regrets.

Given the current market, putting any money in unnecessary repairs just doesn't seem like a good idea. It's a buyer's market and I doubt that new windows would sway a sale. To me, it would be like creating a money pit of sorts.

Put it on the market asap if it is your intent to sell. You just never know who may come along and fall in love with location, price, style, or whatever. Best it be available than you just thinking about wanting to sell. There is a buyer for everything that is for sale! Your house included.

You start adding up property taxes, insurance, a bit of heat to keep the drywall on the walls, you have about what you're paying in rent SOB per month and it never ends. The market was pushed up by speculators into a bubble, it broke, the market has become a bit more sane. Prices were so high that a regular person could not afford to buy a house, today if they have 20% down and a good steady job, they can. It's like it was most of my life. That zero doc crap was nuts! But it sure drove up prices.

Sell the house as it is. You will sill have a pocket full of money and no 40 grand note to deal with. There will be a young man with kids, who is handy, has the down payment and likes your house. He will pay what it is worth today. The bubble was a bubble.

And Happy New Year Steve. It's snowing Billy blue blazzes here on my hill top in Ohio.

You basically answered your own questions. “Replacing them will start an avalanche of repairs”. Just finding a craftsman to duplicate the window surrounds won’t be cheap or easy. At the current projected appreciation rate, even at record low interest rates, you will be well past Medicare age before you would recoup the cost of interest let alone any principle. Maybe you should pull out your birth certificate to confirm how close you really are.Your biggest problem will be what to do with all your worldly treasures if you sell the house. It will cost almost as much to store it all as to keep the house.

Would there by any incentives in your state to upgrade your windows because changing them would make the place more energy efficient? Windows, curiously enough, were something I replaced with insurance money after Katrina. I left a few of the original as a draw for a wannabe owner who wanted the vintage look. However the windows were for my comfort, not for the appeal of a buyer who wouldn't realize how good double insulted windows are on a winter, blustery day.

I am glad I sold when I did before things bottomed out. However, it's costly to return to Louisiana now, unless I reside with family whether they want me there or not. I am facing a long stay in May, as a niece will marry the first week and a nephew will graduate from LSU a few weeks later. I wish I had a place to stay other than with my mom.

Averaged over the year, I spend almost three times the amount of my monthly rent in Mexico to keep the Salem house. It is rather insane -- eating up almost all of my federal retirement check each month.

Well, there are moral and immoral choices for the meatier forks in the road. Otherwise, one path may be as good as another. Whether I have chicken or pizza at our lunch today will result in the same thing: my eventual death.

This past holiday I ran into one of my high school buds. He commented that he had just "given" his house away, I replied that he had sold at market and the old price was just that. I saw him a week later and the first thing he said was that he was so glad to be shed of his old 5 bedroom ranch in the hip neighborhood and its overhead. He was excited about his bid on 200 acres of back land behind his new farm-bid at current market rates.

Steve, will you listen to the voices of reason among your fans? You are insane if you're going to borrow money to start the avalanche of repairs. Sell the damn house or give it away. You will be better off in the long run.

Just today a crew replaced all the windows in my fathers home. He is ancient and had neglected repairs for many years, the windows were falling apart. The "replacement window" industry has become very efficient and they charged $400 each including installation regardless of size. All were custom sizes made to order and have the double glazed thermal blah blah blah. They hinge-in for extremely easy washing and are quite soundproof. Today was sunny and the outside of the windows were almost too hot to touch while the inside was cold.I was impressed and they even did some in an oak finish (interior) and some in an almond finish to match existing colors.They included adding moldings inside and out where necessary. The only additional work to do is about two hours of paint touch up on the moldings.

ok i have to add my 2 cents. Sell the house as is to some wonderful family who will make it a home and love it. Cut it loose and take the lower price. The housing market is going to get worse with the next wave of forclosures. You really did answer your own questions it's just a matter of when. Your life in Mexico makes up for any loss. Making someone a good deal will come back to you. You can't outgive God and there may be someone right there earnestly praying for a good deal on a fixer upper with character. The life we live here isn't about money.